If a business has both the focus and ability to maximize profits for shareholder1

docx

School

Hollywood High School *

*We aren’t endorsed by this school

Course

OPERATIONS

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

1

Uploaded by CoachSquirrel3311

Report
If a business has both the focus and ability to maximize profits for shareholders, but also seeks after a broader mission without maximizing shareholder profits, what type of business entity is it most likely to be? An S corporation. A partnership A B corporation. A limited liability company. The correct answer is a B corporation. A B corporation, also known as a benefit corporation, is a type of business entity that is specifically designed to balance the interests of both shareholders and the broader mission of the company. B corporations are legally required to consider the impact of their decisions not only on shareholders but also on other stakeholders, such as employees, the community, and the environment. An S corporation is not the correct answer because it is a type of corporation that is taxed similarly to a partnership, but it does not have the specific legal requirements to consider broader social and environmental objectives. A partnership is also not the correct answer because it is a type of business entity where two or more individuals agree to jointly own and operate a business, but it does not have the specific legal requirements to consider broader social and environmental objectives. A limited liability company (LLC) is also not the correct answer because it is a flexible form of business entity that combines elements of both a corporation and a partnership, but it does not have the specific legal requirements to consider broader social and environmental objectives. In conclusion, when a business has both the focus and ability to maximize profits for shareholders, but also seeks after a broader mission without maximizing shareholder profits, it is most likely to be a B corporation.
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help

Related Documents

Optimal Table Normalization: Factors & Redundancy Elimination
MMW226480 Study Guide 2023 Trim A(2).pdf
impact of neoliberalism on employee relation.docx
Chapter 03.rtf
Entrepreneurship-SQP.pdf
FinalAnalytical Report _ 2023(1).doc
H4 q3.pdf
BSBFLM312 - 11.docx
FYP Consultancy Project-2.docx
SITHKOP002_task1.docx (1).docx
BSBOPS601 Tasks Khatantumur Zuunnast 02-29.docx
Assignment 2 Econ.docx
Recommended textbooks for you
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
SEE MORE TEXTBOOKS
Recommended textbooks for you
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
SEE MORE TEXTBOOKS